For 2016, Target expects earnings per share to increase 10 percent and a 5 to 10 percent dividend growth rate.

Last week, the retailer reported earnings of $1.50 per share on revenue of $21.75 billion, beating Wall Street's expectations of $1.46 per share on $21.63 billion in revenue. The company's total U.S. sales also grew by 1.9 percent in 2014.

Target also increased its 2015 first-quarter guidance to 95 cents to $1.05 adjusted earnings per share, up from 92 cents per share the same time last year.

"We're seeing early momentum in our efforts to transform Target, and our team is entering the new fiscal year with a singular focus on continuing to differentiate our merchandise assortment and shopping experience while controlling costs by reducing complexity and simplifying the way we work," Cornell said in the company's latest earnings report.

Target has also reportedly zeroed in on seven grocery categories, including yogurt and beer, to attract younger shoppers. In other words, it will be less reliant on products from General Mills, Kraft Foods and Campbell Soup, Reuters said in a report last week that cited The Wall Street Journal.